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Don't Be an April Fool!

There's time for some last-minute tax moves.

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This story appears in the April 2002 issue of Entrepreneur. Subscribe »

If you've already set up a Keogh retirement plan, be sure to make a contribution before April 15 for the 2001 tax year. For 2001, the self-employed can contribute up to 25 percent of their compensation and deduct it from current taxable income.

But if you don't have a Keogh plan, consider a SEP-IRA. "SEPs are one of the most common types of retirement plans used by self-employed people because of the ease of administration and high contribution limits," says Paul Gada, a tax analyst with CCH Business Owner's Toolkit, a division of Riverwoods, Illinois, tax and business law information provider CCH Inc. For 2001, the contribution limits for a self-employed person are about 13 percent of his or her net earnings.

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